Profile No.

: 272 NIC Code:62011

CNC PROGRAMMING

1. INTRODUCTION:

CNC programming is not a difficult task as many think, for beginners it will be useful if they
divide the drawing in some smaller parts and start programming them. Actually CNC
programming takes some time to master, but in short it is just a path for our tool to
machine.
CNC (Computer Numerical Control machines) are widely used in manufacturing industry.
Traditional machines such as vertical millers, center lathes, shaping machines, routers etc.
operated by a trained engineer have, in many cases, been replaced by computer control
machines. So CNC Programming is very good project.

With the present market evolution, one is immersed in providing CNC Programming. With the
aid of team of skillful personnel, one can render these services according to the
requirements of customers. Additionally, it uses innovative techniques and machines with
high precision in order to execute these services. One can make a difference through
introducing a range of Rapid Prototyping and 3D printing solutions.

2. SERVICE & ITS APPLICATION:

Training in the use of CNC’s is available through the use of ‘virtual software’. This is software
that allows the operator to practice using the CNC machine on the screen of a computer. The
software is similar to a computer game. CNC machines can be programmed by advanced
design software such as Pro/DESKTOP®, enabling the manufacture of products that cannot
be made by manual machines, even those used by skilled designers / engineers. Modern
design software allows the designer to simulate the manufacture of his/her idea. There is no
need to make a prototype or a model. This saves time and money. One person can
supervise many CNC machines as once they are programmed they can usually be left to
work by themselves. Sometimes only the cutting tools need replacing occasionally. A skilled
engineer can make the same component many times. However, if each component is
carefully studied, each one will vary slightly. A CNC machine will manufacture each
component as an exact match. Lead to unemployment. Many countries no longer teach
pupils / students how to use manually operated lathes / milling machines etc... Pupils /
students no longer develop the detailed skills required by engineers of the past. These
include mathematical and engineering skills.

3. DESIRED QUALIFICATIONS FOR PROMOTER:

Promoter for this service may have any graduation in computer science as well as High
Visualization skills plus Management in operations can be a value added plus point so that it
brings down the cost of building project and also make the implementation smoother and it
will require less time to build with greater quality. Knowledge of mechanical design,
operation and drawing plus CNC machine, plastic and metal quality is advantage.

4. INDUSTRY LOOK OUT AND TRENDS

The Computer Numerical Control (CNC) machine market size was valued at USD 56.04 billion
in 2016 and is anticipated to witness lucrative growth over the forecast period. Increasing
advancements in production technology have led to a reduction in time required for
manufacturing components along with improved ability to produce components with better
surface finish. This is anticipated to drive the demand for CNC machines across the globe.
Evolution of Internet of Things (IoT) and machine learning technology has led to
development of applications that notify the status of a machine to operators/supervisors on
their PCs or smartphones. Various government initiatives, for instance, ‘Make in India’ by the
Indian government and ‘Made in China 2025’ by the Chinese government, support the
establishment of manufacturing units in their respective nations.

5. MARKET POTENTIAL AND MARKETING ISSUES:

Though CNC Machines are new technology for India, It is developed since 70s, in advance
countries. This machine recently very rapidly replaces the convention engineering
machineries. 2D and 3D printing technology added this service for better result. As it is
required high skill operation, the CNC programming is in much demand.

6. THE TECHNOLOGY:

There are two types of computer aided design software. 2D design software allows the
designer to design shapes with very limited three dimensional properties. Do not
underestimate the designs that can be achieved through 2D software. Most CAD/CAM
software allows the designer to test the manufacture of his/her design on a computer rather
than actually making it. This saves time and materials. Testing designs is carried out using
‘simulation’ software. When the design is run through simulation software the computer
displays the manufacturing on the screen. It also checks whether or not the design can be
manufactured successfully. Many designs have to be altered before they can be made by a
CNC machine. After all the testing and improvements to the design, it can finally be
manufactured on a CNC machine. 3D Design software allows the designer to produce three
dimensional representations of his/her ideas. When completed the design can be viewed on
the screen and it can even be revolved and examined at any angle. 3D software is much
more complex than 2D software such as Tec Soft 2D design. It requires specialist training
before it can be used competently.

7. REQUIREMENTS – Material/Equipment and manpower

 Resources
CNC Machine, Control panel, Computers with latest OS and Network Infrastructure,
Advanced Software like CAD CAM and other software according to the requirement.

8. MANPOWER REQUIREMENT:

Sr. No. Designation of Salary Monthly

Year-1 Year-2 Year-3 Year-4 Year-5
Employees Per Salary ₹
1 Software technician PERSON
18000 18000 1 1 1 1 1

2 Tech Support 12000 60000 5 5 5 5 5

3 Marketing Support 10000 20000 2 2 2 2 2

4 Quality testing person 15000 15000 1 1 1 1 1

5 Accounts/Stores Assistant 12500 25000 2 2 2 2 2

6 Office Boy 9000 40000 2 2 2 2 2

Total 158000 12 12 12 12 12

9. IMPLEMENTATION SCHEDULE:

The project can be implemented in 3 months’ time as detailed below:

Sr. No. Activity Time Required

(in months)
1 Acquisition of premises 1.00

2 Construction (if applicable) 1.00

3 Procurement & installation of Plant & Machinery 1.00

4 Arrangement of Finance 2.00

5 Recruitment of required manpower 1.00

Total time required (some activities shall run concurrently) 3.00

10. COST OF PROJECT:

 Sr. No. Particulars ₹ in Lacs
1 Land 5.00
2 Building 10.00
3 Plant & Machinery 11.00
4 Furniture, Electrical Installations 5.00
Other Assets including Preliminary / Pre-operative
5 1.10
expenses
6 Working Capital 12.00
Total 44.10

11. MEANS OF FINANCE:

Bank term loans are assumed @ 75 % of fixed assets. The proposed funding pattern is as
under:
Sr. No. Particulars ₹ in Lacs
1 Promoter’s contribution 11.03
2 Bank Finance 33.08
Total 44.10

12. WORKING CAPITAL CALCULATION:

The project requires working capital of 12.00 lakhs as detailed below:

Gross Margin Bank
Sr. No. Particulars Margin %
Amt Amt Finance
1 Inventories 6.00 0.25 1.50 4.50
2 Receivables 3.00 0.25 0.75 2.25
3 Overheads 3.00 100% 3.00 0.00
4 Creditors - 0.00 0.00
Total 12.00 5.25 6.75
13. LIST OF PLANT AND MACHINERIES:

Value
Sr. No. Particulars UOM Qtty Rate (₹)
(₹ in Lacs)
Plant & Machinery /
equipments
 a) Main Machinery
i. Cnc Plastic Machine NOS. 1 700000 7.00
ii. Software Nos 5 50000 2.50
iii. Computer Network Nos 1 50000 0.50
Installation, erection
IV 50,000 0.50
electrification.
V Taxes and Transportation 50000 0.50
sub-total Plant & Machinery 11.00
Furniture / Electrical
installations
a) Office furniture LS 1 50000 0.50
b) Stores Almirah LS 1 0 0.00
c) Computer & Printer L. S. 1 50000 4.50
Sub total 5.00
Other Assets
A Preliminary and preoperative 1.10
sub-total Other Assets 1.10
Total 17.10

All the machines, computer/their peripherals and equipment are available from local
manufacturers. The entrepreneur needs to ensure proper selection of product mix and
proper type of machines, computers and accessories to have modern and flexible designs.
Some of the machinery and computer suppliers are listed here below:

1. Success Technologies
97, Barcelona Industrial Estate,
Odhav Ring Road Circle, Odhav,
Ahmedabad, Gujarat 382415. Phone: 076000 08995

2. Impressive Computers
Hasan Ali House No. 4/41-A, Noor Baug,
Umerkhadi, Mumbai - 400009,
Maharashtra, India

3. Computer Planet
Shop No. 1, Shaniwar Peth-53, Opposite Amruteshwar Mandir,
 Amruteshwar Co Operative Housing Society,
Near Shaniwar Wada, Pune – 411030,
Maharashtra, India

4. AXYZ INTERNATIONAL - “Foreign Supplier”

5330 South Service Road, Burlington, Ontario, L7L 5L1
Canada. Tell: +1 800 361 3408, Email: enquiries@axyz.com

5. S. A. Engineering Works
No. 17/2, Periyasamy Street, Sunambu Kalavai,
Kuniyamuthur, Coimbatore-641008, Tamil Nadu, India
Phone: +91-9362233362; +91-9047476299, +91-422-2233362

14. PROFITABILITY CALCULATIONS:

Sr. No. Particulars UOM Year-1 Year-2 Year-3 Year-4 Year-5

1 Capacity Utilization % 60% 70% 80% 90% 100%
2 Sales ₹. In Lacs 36.00 42.00 48.00 54.00 60.00
Raw Materials & Other direct
3 ₹. In Lacs 12.48 14.56 16.64 18.72 20.80
inputs
4 Gross Margin ₹. In Lacs 23.52 27.44 31.36 35.28 39.20
5 Overheads except interest ₹. In Lacs 6.24 6.63 7.41 7.64 7.80
6 Interest ₹. In Lacs 3.31 3.31 2.21 1.65 1.32
7 Depreciation ₹. In Lacs 7.70 5.50 3.85 2.75 2.48
8 Net Profit before tax ₹. In Lacs 6.27 12.00 17.89 23.23 27.60

The basis of profitability calculation:

The growth of selling capacity will be increased 10% per year. (This is assumed by various
analysis and study; it can be increased according to the selling strategy.)

Energy Costs are considered at Rs 7 per Kwh and fuel cost is considered at Rs. 65 per liter.
The depreciation of plant is taken at 10-12 % and Interest costs are taken at 14 -15 %
depending on type of industry.
 15. BREAK EVEN ANALYSIS:

Sr. No. Particulars UOM Value

1 Sales at full capacity ₹. In Lacs 60.00
2 Variable costs ₹. In Lacs 20.80
3 Fixed costs incl. Interest ₹. In Lacs 9.12
% of
4 BEP = FC/(SR-VC) x 100 = 23.27%
capacity

16. STATUTORY / GOVERNMENT APPROVALS

As per the allocation of business rules under the Constitution, labour is in the concurrent list
of subjects. It is dealt with by the MOLE at the Central and Departments of Labour under
State Governments in respective States / UTs. The MOLE has enacted workplace safety and
health statutes concerning workers in the manufacturing sector, mines, ports and docks and
in construction sectors.

Further, other Ministries of the Government of India have also enacted certain statutes
relating to safety aspects of substances, equipment, operations etc. Some of the statutes
applicable in the manufacturing sector are discussed below:
The Manufacture, Storage and Import of Hazardous Electronic Rules (MSIHC),
1989
These MSIHC Rules are notified under the Environment (Protection) Act, 1986. These rules
are aimed at regulating and handling of certain specified hazardous chemicals. The rules
stipulate requirements regarding notification of site, identification of major hazards, taking
necessary steps to control major accident, notification of major accident, preparation of
safety report and on-site emergency plan; prevention and control of major accident,
dissemination of information etc. These rules are notified by the Ministry of Environment and
Forests (MOEF) but enforced by the Inspectorates of Factories of respective States / UTs in
the manufacturing sector. Entrepreneur may contact State Pollution Control Board where
ever it is applicable.
 17. BACKWARD AND FORWARD INTEGRATIONS

Both forward and backward integration for any Electrical Industry are strategies to gain
better control over the supply chain, reduce dependency on the suppliers and increase their
competitiveness.  The two strategies can help companies reduce their dependency on
suppliers and increase their influence over the customers. The benefits of these strategies
can be big. Both impact the bottom line directly. Integration happens if a company moves
upward or downward in its supply chain. Starting from the suppliers from whom the raw
materials are obtained, the chain moves downstream towards the distributors and the
retailers. If the suppliers’ power is very high, it can create financial burdens for the company.
Suppose the number of suppliers of a company is low, then the control in their hands would
be low. The burden in that case will fall upon company’s shoulders. Its expenditure on raw
materials will be high.

18. TRAINING CENTERS AND COURSES

There is no such training required to start this business but, basic Plastic Engineering and
IT/Computer Programming related course can be plus point for promoter. Promoter may
train their employees in such specialized institutions to grow up the business. There are few
specialized Institutes provide degree certification in chemical Technology, few most famous
and authenticate Institutions are as follows:
1. Department of Electrical LD College of engineering
No.120, Circular Road, University Area, Navrangpura,
Opposite Gujarat University, Ahmedabad, Gujarat 380015

2. MIT College of Engineering, Pune

Gate.No.140, Raj Baugh Educational Complex,
Pune Solapur Highway, Loni-Kalbhor, Pune – 412201
Maharashtra, India

3. Central Institute of Plastics Engineering and Technology

 CIPET Head Office, T.V.K. Industrial Estate,
Guindy, Chennai - 600 032.
Phone No.: +91-44-22254780, +91-44-22253040
Fax No.: +91-44-22254787
Udyamimitra portal  ( link : www.udyamimitra.in ) can also be accessed for handholding
services viz. application filling / project report preparation, EDP, financial Training, Skill
Development,  mentoring etc.

Entrepreneurship program helps to run business successfully is also available from Institutes
like Entrepreneurship Development Institute of India (EDII) and its affiliates all over India.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery manufacturers
have been taken from reliable sources, to the best of knowledge and contacts.  However, no
responsibility is admitted, in case any inadvertent error or incorrectness is noticed therein. 
Further the same have been given by way of information only and do not carry any
recommendation.